8-KMaterial AgreementsFinancial EventsOther Events+1

CROWN CASTLE INC. 8-K Report, Material Agreement (Jan 17, 2018)

Filed January 17, 2018For Securities:CCI

Summary

Crown Castle Inc. (CCI) announced on January 17, 2018, the successful closing of a significant debt offering. The company issued $750 million in 3.150% Senior Notes due 2023 and $1.0 billion in 3.800% Senior Notes due 2028, totaling $1.75 billion. The proceeds from this offering were strategically utilized to retire existing subsidiary debt, specifically the Senior Secured Tower Revenue Notes, Series 2010-3, and to pay down a portion of its revolving credit facility. This move demonstrates CCI's proactive approach to managing its capital structure and optimizing its borrowing costs. The new notes are senior unsecured obligations, ranking equally with existing senior indebtedness. The company has also filed supplemental indentures outlining the terms of these new notes, including provisions for redemption and covenants that limit the company's ability to incur liens or merge under certain conditions. Investors should note the maturity dates of the 2023 and 2028 notes and the terms under which the company can redeem them, including potential make-whole premiums.

Key Highlights

  • 1Successfully closed a $1.75 billion public offering of senior notes: $750 million of 3.150% Senior Notes due 2023 and $1.0 billion of 3.800% Senior Notes due 2028.
  • 2Used net proceeds to repay in full Senior Secured Tower Revenue Notes, Series 2010-3 and a portion of its revolving credit facility.
  • 3The new notes are senior unsecured obligations, ranking equally with existing senior indebtedness and senior to subordinated indebtedness.
  • 4The notes rank junior to secured indebtedness to the extent of asset value backing such secured debt.
  • 5Notes are structurally subordinated to liabilities of Crown Castle's subsidiaries.
  • 6Maturity dates are July 15, 2023 for the 2023 Notes and February 15, 2028 for the 2028 Notes.
  • 7Includes provisions for note repurchase at 101% of principal in the event of a Change of Control Triggering Event.

Frequently Asked Questions

Crown Castle raised a total of $1.75 billion through the issuance of two tranches of senior notes: $750 million of 3.150% Senior Notes due 2023 and $1.0 billion of 3.800% Senior Notes due 2028.

The net proceeds were used to repay in full the Senior Secured Tower Revenue Notes, Series 2010-3, issued by certain of Crown Castle's subsidiaries, and to repay a portion of the outstanding borrowings under its existing revolving credit facility.

The new notes are senior unsecured obligations of Crown Castle, meaning they rank equally with all existing and future senior indebtedness. They rank senior to all future subordinated indebtedness. However, they effectively rank junior to any secured indebtedness to the extent of the value of assets securing that debt, and are structurally subordinated to all liabilities of Crown Castle's subsidiaries.

In the event of a Change of Control Triggering Event, holders of the Notes will have the right to require Crown Castle to repurchase all or any part of their Notes at a purchase price equal to 101% of the aggregate principal amount, plus any accrued and unpaid interest.